United States lawmakers representing Pennsylvania applauded a newly proposed federal investment that could help semiconductor manufacturer Infinera Corp. build a new plant in Bethlehem, Pa.
Specifically, Infinera and the U.S. Commerce Department have signed a non-binding preliminary memorandum of terms for Infinera to receive up to $93 million in direct funding as part of the bipartisan CHIPS and Science Act.
The proposed direct funding, when combined with investment tax credits available under the CHIPS and Science Act, could result in more than $200 million in total federal incentives, as well as potential state and local incentives.
If approved, U.S. Sens. Bob Casey (D-PA) and John Fetterman (D-PA) and U.S. Rep. Susan Wild (D-PA) said the investment would support Infinera’s expansion and modernization of a new Advanced Test and Packaging (ATP) facility.
“I fought to pass the CHIPS and Science Act to ensure that Pennsylvania workers can continue leading the world in building the technology of tomorrow,” Casey said. “This agreement is another critical step to deliver jobs and dollars to our commonwealth, while protecting our nation’s national and economic security.”
The deal between Infinera and the Commerce Department also would create good-paying jobs in the Lehigh Valley and increase Infinera’s capacity to manufacture semiconductors, which are vital to national security and American supply chain resilience, said the lawmakers.
“This is exactly what ‘Making Stuff Here’ in America and Pennsylvania looks like,” said Fetterman. “Thanks to the Biden-Harris administration’s implementation of the CHIPS Act, we’ll be seeing hundreds of good-paying jobs brought to Bethlehem.”
The Lehigh Valley, he added, has a rich history of innovation –– it’s where the first facility to mass-produce transistors was built.
“By investing in companies like Infinera, we’re standing up to global competitors and building on American legacies,” said Fetterman.
Wild pointed out that by supporting the construction of a new ATP facility in Bethlehem, the proposed grant also would revitalize the state’s local semiconductor industry and address key national security concerns.
“I was proud to help secure this funding for Infinera, to support our national security and intelligence communities, and bolster our local economy and manufacturing ecosystem,” Wild said. “I will continue to advocate for our community to receive federal resources, promote Made in America policies, and protect our nation from foreign adversaries.”
The preliminary agreement between the Commerce Department and Infinera also would provide major investments to Infinera’s semiconductor capabilities in Silicon Valley, Calif., where its existing domestic manufacturing capacity would increase by an estimated factor of 10, the company said.
“We are grateful for the bipartisan efforts under the CHIPS and Science Act to increase semiconductor fabrication and packaging in the U.S. and protect our national and economic security,” said Infinera CEO David Heard. “The proposed CHIPS funding will enable us to better secure our supply chain and compete more effectively with foreign adversary nations.”
Finera’s photonic semiconductors address the increased demand for bandwidth from consumers while opening new markets inside the data center driven by the explosive growth in AI workloads, he added.